How to use these instructions to complete the RTP schedule and find out what's new since last year.
Who needs to complete the schedule?
Positions you need to disclose
What you must report on your entity's tax return
Using these instructions
Follow these instructions to complete the Reportable tax position (RTP) schedule (NAT 74066). The schedule forms part of your entity's tax return.
When we say 'you' in these instructions, we mean you as the person responsible for completing the Reportable tax position schedule 2022.
These instructions aren't a guide to income tax law. You can ask for help from us or a recognised tax adviser if you feel these instructions don't fully cover your circumstances.
What's new?
The definition of who needs to lodge has been updated to be any company that meets the total business income thresholds.
Private companies are required to self-assess their requirement to lodge the RTP schedule for years beginning on or after 1 July 2021. A private company will be required to lodge an RTP schedule for the 2021–22 income year if it meets the RTP schedule lodgment criteria. A large Australian private company with an early balancing substituted accounting period (SAP) starting before 1 July, is only required to lodge an RTP schedule for the 2021–22 income year if it received a notification.
We have narrowed the scope of reporting obligations against taxpayer alert related questions in Category C. You no longer need to disclose arrangements that have already been reviewed by us, where we have advised we won't take further action.
The following Category C questions have changed:
- Question 24 – now requires comments if you have not calculated an earnings before interest and tax (EBIT) margin for your entity's arrangement under PCG 2019/1
- Question 25 – now distinguishes between arrangements with any offshore party and those with offshore related parties
- Question 31 – ATO ID 2010/175 reference to Burton case has been removed.
The following Category C questions have been removed:
- Question 1 – s25-90 deductions and s23AH and s768-5 exempt income
- Question 6 – related party foreign currency denominated finance transaction(s) with related party cross-currency interest rate swaps (TA 2016/3)
- Question 8 – offshore permanent establishments (TA 2016/7)
- Question 20 – securities lending and derivative contracts received franking credits (TA 2018/1)
- Question 38 – new practical compliance guidelines.
We have added the following Category C questions:
- Question 39 – imported hybrid mismatch rules (PCG 2021/5)
- Question 40 – disguising undeclared foreign income as gifts or loans from related overseas entities (TA 2021/2).
Who needs to complete the schedule?
You need to complete the schedule if your entity:
- is lodging a company tax return for the entire year (12 months or more)
- has total business income of either:
- $250 million or more in the current year
- $25 million or more in the current year and is part of an economic group with total business income of $250 million or more in the current year.
If your entity meets the criteria, you need to lodge the schedule even if it has no disclosures. You may still need to lodge the schedule even if your entity doesn't meet the criteria. We will notify you if this is the case.
We have provided examples to help you:
- calculate your entity's group income
- work out who is in your entity's economic group
- assess if you need to lodge an RTP schedule if your entity is lodging a stub return.
For large private companies, see RTP schedule expansion to large private companies.
Exceptions to lodgment requirement
You are not required to lodge the schedule if your entity:
- is not required to lodge a company tax return for the income year (the RTP schedule is a schedule to the company tax return)
- has an income tax annual compliance arrangement (ACA) with us for the relevant income year. Under the ACA, your entity has agreed is to provide full and true disclosure and ongoing dialogue of all material tax matters, including any positions that fall within any reportable tax position category.
If you are uncertain if your entity is required to lodge the schedule, you can email ReportableTaxPosition@ato.gov.au
Positions you need to disclose
You only need to disclose Category A positions that exceed your entity's materiality amount.
All Category C positions must be disclosed in the schedule.
If your entity is the head of a tax consolidated group, you need to disclose positions that meet the requirements to be a reportable tax position under categories A, B and C taken by the head entity or any of its subsidiary group members.
Completing the schedule allows you to make informed decisions about positions your entity has taken or is considering taking.
What you must report on your entity's tax return
If you are required to lodge an RTP schedule, you must answer Yes to item 25 of the Company tax return 2022.
Continue to: How to complete the RTP schedule